United, Continental said to be in merger talks

United, Continental said to be in merger talks Shares of Continental Airlines and the parent of United Airlines rose after reports that the carriers are talking about combining to create the world's largest carrier. The New York Times cited people briefed on the discussions, who said the talks were in early stages and could still collapse. The news comes a week after reports that United and US Airways have been talking about combining. A spokeswoman for United said it doesn't comment on rumors. Continental Airlines also wouldn't comment. Shares of Continental rose 52 cents to close at $23.77; United parent UAL Corp. jumped $1.18 to $23.54.

Initial jobless claims up sharply for 2nd week The number of newly laid off people signing up for unemployment benefits rose sharply for the second straight week, suggesting that jobs are still hard to come by even as the economic recovery gains traction. The Labor Department reported that first-time requests for jobless benefits rose by 24,000 last week to a seasonally adjusted 484,000, the highest level since late February. Economists had predicted claims would fall. It marked the second week that claims took an unexpected leap. In the prior week, claims rose by 18,000 to 460,000.

Factories, mines boost industrial production Output at America's factories, mines and utilities edged up just 0.1 percent in March. But the overall figure was held back by a temporary decline in utility output related to warmer weather. By contrast, increases in factory production and mining offered the latest signs that the economy is recovering. Manufacturing rose 0.9 percent and mining 2.3 percent, the Federal Reserve reported. The jump in factory production was an improvement from the 0.2 percent increase in February, when East Coast snowstorms restrained production.

3 arrested in Hewlett-Packard kickback case Three people who once worked for Hewlett-Packard Co. were arrested in an investigation of alleged kickbacks totaling $10.9 million surrounding a deal to sell equipment to Russian authorities, German prosecutors said. The three were arrested in Germany and Switzerland in December and later freed on bail, prosecutors in Dresden said. U.S. authorities are also apparently investigating; HP issued a statement to say it was cooperating with the Securities and Exchange Commission.

Thou shalt not bring an iPad tablet to Israel Israel has banned imports of Apple Inc.'s hottest new product, the iPad, citing concerns the powerful gadget's wireless signals could disrupt other devices. Customs officials said they have already confiscated about 10 of the lightweight tablet computers since Israel announced the new regulations this week. The ban prevents anyone -- even tourists -- from bringing iPads into Israel until officials certify that they comply with local transmitter standards.

Greece begins talks with IMF about bailout Greece moved closer to seeking assistance from the International Monetary Fund as market concern over Europe's role in a joint rescue package drove government borrowing costs back up to near record levels. IMF managing director Dominique Strauss-Kahn responded swiftly to a Greek request for talks, ordering negotiators to Athens to join visiting officials from the European Union Commission. Greek officials played down the meetings, describing them as technical discussions.